US Cities Enact Data Center Moratoriums Over Resource Concerns

Local governments across the United States are implementing pauses on data center construction to address community concerns over resource consumption and environmental impacts. On August 11, 2026, the Indianapolis City-County Council voted 23-1 to advance a moratorium on new data center applications in Marion County through December 31, 2027. The measure, supported by Mayor Joe Hogsett, now awaits final approval from the Indianapolis Metropolitan Development Commission. Three previously approved projects remain exempt.

Similar actions occurred in other states. The Marshall City Council in Michigan approved a 365-day moratorium, delaying a project by Alterra Development. Mayor Scott Wolfersberger stated the city will use the period to create ordinances limiting harmful vibrations. Alterra has since reduced its projected energy use by 60% by scrapping a planned gas generation plant, shifting the project from a hyperscale facility to an enterprise-class center.

In Wisconsin, the Wisconsin Rapids Planning Commission voted 6-0 for a 12-month moratorium following significant public interest regarding a proposed hyperscale center at a former paper mill site.

Conversely, the Aurora City Council in Colorado rejected a proposal to pause data center applications after Mayor Mike Coffman cast a tiebreaking vote. Instead, the council passed a resolution directing the city manager to develop strict development standards within 35 days, specifically prohibiting evaporative cooling to protect municipal water supplies. These new rules will apply to future developments but will not affect existing facilities or those already in the development process.